Changes

The Obama [[Federal budget deficit|deficit]]s were unquestionably the largest on record and represented an explosion of debt owed to foreign investors -- [[capital]] that must be exported in the future. The deficit under President Obama for the year ending September 30, 2011 was reported by the administration as $1,300 billion dollars (or $1.3 trillion).

The Obama [[Federal budget deficit|deficit]]s were unquestionably the largest on record and represented an explosion of debt owed to foreign investors -- [[capital]] that must be exported in the future. The deficit under President Obama for the year ending September 30, 2011 was reported by the administration as $1,300 billion dollars (or $1.3 trillion).

[[File:Obama deficits 2009-2010.JPG|thumb|241px|right|Incease in Public Debt]]

[[File:Obama deficits 2009-2010.JPG|thumb|241px|right|Incease in Public Debt]]

President Obama's record deficits stemmed from the $787 billion failed [[Economic stimulus]], "hundreds of billions"<ref>https://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022504066.html</ref> on so-called [[Obamacare|healthcare reform]], and the $80 billion<ref>http://www.time.com/time/business/article/0,8599,1897321,00.html</ref> [[UAW]] [[bailout]], which added to [[President George W. Bush]]'s proposed  $700 billion deficit<ref>https://www.washingtonpost.com/wp-dyn/content/graphic/2009/03/21/GR2009032100104.html</ref> in 2008. [[President Obama]]'s claim  "I had a $1.3 trillion deficit wrapped in a bow, waiting for me at the Oval Office"<ref>http://www.whitehouse.gov/the-press-office/2010/09/20/remarks-president-cnbc-town-hall-discussion-jobs</ref> is unsupported by the facts.

President Obama's record deficits stemmed from the $787 billion failed [[Economic stimulus]], "hundreds of billions"<ref>https://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022504066.html</ref> on so-called [[Obamacare|healthcare reform]], and the $80 billion<ref>http://www.time.com/time/business/article/0,8599,1897321,00.html</ref> [[UAW]] [[bailout]], which added to [[President George W. Bush]]'s proposed  $700 billion deficit<ref>https://www.washingtonpost.com/wp-dyn/content/graphic/2009/03/21/GR2009032100104.html</ref> in 2008. [[President Obama]]'s claim  "I had a $1.3 trillion deficit wrapped in a bow, waiting for me at the Oval Office"<ref>https://www.whitehouse.gov/the-press-office/2010/09/20/remarks-president-cnbc-town-hall-discussion-jobs</ref> is unsupported by the facts.

==Reliance on foreign investors==

==Reliance on foreign investors==

Martin Feldstein notes the [[Obama administration]]'s aim to [[Debt monetization|monetize the debt]] is "a dangerous gamble with only a small potential upside benefit and substantial risks of creating asset bubbles that could destabilise the global economy." Feldstein continues, "The greatest danger will then be to leveraged investors, including individuals who bought these assets with borrowed money and banks that hold long-term securities. These risks should be clear after the recent crisis driven by the bursting of asset price bubbles. Although the specific asset prices that are now rising are different from last time, the possibility of damaging declines when bubbles burst is worryingly similar."<ref>http://www.nber.org/feldstein/ft11032010.html</ref>

Martin Feldstein notes the [[Obama administration]]'s aim to [[Debt monetization|monetize the debt]] is "a dangerous gamble with only a small potential upside benefit and substantial risks of creating asset bubbles that could destabilise the global economy." Feldstein continues, "The greatest danger will then be to leveraged investors, including individuals who bought these assets with borrowed money and banks that hold long-term securities. These risks should be clear after the recent crisis driven by the bursting of asset price bubbles. Although the specific asset prices that are now rising are different from last time, the possibility of damaging declines when bubbles burst is worryingly similar."<ref>http://www.nber.org/feldstein/ft11032010.html</ref>

[[Sarah Palin]] worries about the resulting [[inflation]] as well. "All this pump priming will come at a serious price. And I mean that literally: everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher."<ref>http://www.nationalreview.com/corner/252715/palin-bernanke-cease-and-desist-robert-costa#</ref>

[[Sarah Palin]] worries about the resulting [[inflation]] as well. "All this pump priming will come at a serious price. And I mean that literally: everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher."<ref>https://www.nationalreview.com/corner/252715/palin-bernanke-cease-and-desist-robert-costa#</ref>

==See also ==

==See also ==